Question 1

When is centralization of decision-making desirable?

Accepted Answer

Centralization of decision-making is des

Question 2

An organization producing a wide range of products is more likely to decentralize its decision making process than a firm operating in a single industry.

Accepted Answer

A) True 
 B)False

Question 3

The following is an organization chart depicting a single row of individuals A, B, and C.

-Identify the statement which is true of the organization depicted in this figure?

Accepted Answer

A) There is a strong linkage between the individuals represented in the chart. 
B) It is a sole proprietorship firm. 
C) The above organization chart depicts a U-form firm. 
D) Team production is unimportant in this organization. 
A) There is a strong linkage between the individuals represented in the chart. 
B) It is a sole proprietorship firm. 
C) The above organization chart depicts a U-form firm. 
D) Team production is unimportant in this organization.

Question 4

Centralization of decision-making in a firm is a good idea when:

Accepted Answer

A) the people who produce the information also have decision-making skills. 
B) all the information comes from internal sources. 
C) the incentives of the decision-makers is not aligned with the firm's share holders. 
D) those who have the relevant information are not equipped to analyze it. 
A) the people who produce the information also have decision-making skills. 
B) all the information comes from internal sources. 
C) the incentives of the decision-makers is not aligned with the firm's share holders. 
D) those who have the relevant information are not equipped to analyze it.

Question 5

Centralization of all decision making in an organization is essential to protect the interests of its shareholders.

Accepted Answer

A) True 
 B)False

Question 6

Categorization of activities in an organization along product or geographic lines is called:

Accepted Answer

A) globalization. 
B) decentralization. 
C) functionalization. 
D) divisionalization. 
A) globalization. 
B) decentralization. 
C) functionalization. 
D) divisionalization.

Question 7

What is the principal difference between a U-form and an M-form organization?

Accepted Answer

A U-form organization has a centralized

Question 8

Orders can lose accuracy:

Accepted Answer

A) if they are too complicated. 
B) as they are transmitted within the organization. 
C) in organizations where decision-making is decentralized. 
D) unless they are given to the right recipient. 
A) if they are too complicated. 
B) as they are transmitted within the organization. 
C) in organizations where decision-making is decentralized. 
D) unless they are given to the right recipient.

Question 9

An organization chart reveals all the formal and informal alliances between the various levels and departments within the organization.

Accepted Answer

A) True 
 B)False

Question 10

British manufacturers lost their competitive edge in the early twentieth century to industries in the United States and elsewhere in Europe mainly because they failed to reorganize their operations to take full advantage of their inventions.

Accepted Answer

A) True 
 B)False

Question 11

Identify a disadvantage of organizational charts.

Accepted Answer

An organization chart only shows channel

Question 12

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Identify the correct statement from the following.

Accepted Answer

A) The board will be responsible for all decision-making process. 
B) The board will be in the best position to solve even a minor problem at the coffee plantation. 
C) The sports gear firm's risk assessment team will also be responsible for assessing market risk for the group's other functional areas. 
D) Decisions for the publishing house are likely to be taken by the individuals who head it, rather than the board of directors heading the entire group. 
A) The board will be responsible for all decision-making process. 
B) The board will be in the best position to solve even a minor problem at the coffee plantation. 
C) The sports gear firm's risk assessment team will also be responsible for assessing market risk for the group's other functional areas. 
D) Decisions for the publishing house are likely to be taken by the individuals who head it, rather than the board of directors heading the entire group.

Question 13

To minimize distortion and errors, it is best to ensure the shortest path between the source of the information and its user.

Accepted Answer

A) True 
 B)False

Question 14

Identify the characteristic of a U-form organization from the following.

Accepted Answer

A) A divisionally organized firm is often called a U-form firm. 
B) The heads of the different branches at different locations report to the headquarters. 
C) Information submitted by all departments are used by the headquarters to make all the decisions. 
D) There is a substantial degree of inter-dependence between various departments. 
A) A divisionally organized firm is often called a U-form firm. 
B) The heads of the different branches at different locations report to the headquarters. 
C) Information submitted by all departments are used by the headquarters to make all the decisions. 
D) There is a substantial degree of inter-dependence between various departments.

Question 15

Can information life-span be a determining factor in deciding which organization structure is superior?

Accepted Answer

The type of organization structure which

Question 16

When an organization sets up a self-contained unit, the risk management teams at the divisional levels become redundant.

Accepted Answer

A) True 
 B)False

Question 17

A firm's ability to process information depends on:

Accepted Answer

A) its human resources. 
B) how the information is transferred within the organization. 
C) its organizational design. 
D) how the information originates. 
A) its human resources. 
B) how the information is transferred within the organization. 
C) its organizational design. 
D) how the information originates.

Question 18

-Refer to Figure .Identify the structure of Z Corp.

Accepted Answer

A) U-form 
B) M-form 
C) Mixed organization 
D) Matrix organization 
A) U-form 
B) M-form 
C) Mixed organization 
D) Matrix organization

Question 19

A company X is unlikely to disclose its organizational chart to its competitor company Y to prevent leak of important strategic information about itself.

Accepted Answer

A) True 
 B)False

Question 20

The _____ keeps decisions at the divisional level that would be sent to headquarters in a _____.

Accepted Answer

A) matrix organization; M-form firm 
B) U-form; M-form firm 
C) U-form; matrix organization 
D) M-form; U-form firm 
A) matrix organization; M-form firm 
B) U-form; M-form firm 
C) U-form; matrix organization 
D) M-form; U-form firm

When is centralization of decision-making desirable?

An organization producing a wide range of products is more likely to decentralize its decision making process than a firm operating in a single industry.

The following is an organization chart depicting a single row of individuals A, B, and C. -Identify the statement which is true of the organization depicted in this figure?

Centralization of decision-making in a firm is a good idea when:

Centralization of all decision making in an organization is essential to protect the interests of its shareholders.

Categorization of activities in an organization along product or geographic lines is called:

What is the principal difference between a U-form and an M-form organization?

Orders can lose accuracy:

An organization chart reveals all the formal and informal alliances between the various levels and departments within the organization.

British manufacturers lost their competitive edge in the early twentieth century to industries in the United States and elsewhere in Europe mainly because they failed to reorganize their operations to take full advantage of their inventions.

Identify a disadvantage of organizational charts.

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Identify the correct statement from the following.

To minimize distortion and errors, it is best to ensure the shortest path between the source of the information and its user.

Identify the characteristic of a U-form organization from the following.

Can information life-span be a determining factor in deciding which organization structure is superior?

When an organization sets up a self-contained unit, the risk management teams at the divisional levels become redundant.

A firm's ability to process information depends on:

-Refer to Figure .Identify the structure of Z Corp.

A company X is unlikely to disclose its organizational chart to its competitor company Y to prevent leak of important strategic information about itself.

The _ keeps decisions at the divisional level that would be sent to headquarters in a _.

Reasoning With Economics: Models and Information

Transactions and Institutions: the Building Blocks

Markets

Cost and Production

Extreme Markets I: Perfect Competition

Extreme Markets II: Monopoly

Between the Extremes: Interaction and Strategy

Competition and Strategy

Beyond Markets; Property and Contracts

The Economics of Contracts

Risk and Information in Contracts

Organizations in Concept and Practice

Vertical Relationships

Employment Relationships

Time, Risk and Options

Conflict, Negotiation and Group Choice

Filters

Exam 13: Organizational Design

When is centralization of decision-making desirable?

An organization producing a wide range of products is more likely to decentralize its decision making process than a firm operating in a single industry.

The following is an organization chart depicting a single row of individuals A, B, and C. -Identify the statement which is true of the organization depicted in this figure?

Centralization of decision-making in a firm is a good idea when:

Centralization of all decision making in an organization is essential to protect the interests of its shareholders.

Categorization of activities in an organization along product or geographic lines is called:

What is the principal difference between a U-form and an M-form organization?

Orders can lose accuracy:

An organization chart reveals all the formal and informal alliances between the various levels and departments within the organization.

British manufacturers lost their competitive edge in the early twentieth century to industries in the United States and elsewhere in Europe mainly because they failed to reorganize their operations to take full advantage of their inventions.

Identify a disadvantage of organizational charts.

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Identify the correct statement from the following.

To minimize distortion and errors, it is best to ensure the shortest path between the source of the information and its user.

Identify the characteristic of a U-form organization from the following.

Can information life-span be a determining factor in deciding which organization structure is superior?

When an organization sets up a self-contained unit, the risk management teams at the divisional levels become redundant.

A firm's ability to process information depends on:

-Refer to Figure .Identify the structure of Z Corp.

A company X is unlikely to disclose its organizational chart to its competitor company Y to prevent leak of important strategic information about itself.

The _____ keeps decisions at the divisional level that would be sent to headquarters in a _____.

Reasoning With Economics: Models and Information

Transactions and Institutions: the Building Blocks

Markets

Cost and Production

Extreme Markets I: Perfect Competition

Extreme Markets II: Monopoly

Between the Extremes: Interaction and Strategy

Competition and Strategy

Beyond Markets; Property and Contracts

The Economics of Contracts

Risk and Information in Contracts

Organizations in Concept and Practice

Vertical Relationships

Employment Relationships

Time, Risk and Options

Conflict, Negotiation and Group Choice

Filters

The _ keeps decisions at the divisional level that would be sent to headquarters in a _.